Posted on: 13th Oct, 2009 09:16 am
my wife and i have just gone through a chapter 7 bankruptcy. we do not want to keep the house. we called the mortgage company to let them know that we are looking at leaving how ever the morgtage company said that we may still owe them money. they told my wife that a bankruptcy doesn't always eliminate all of the morgtage debt. is this correct?
Was the house included in the chapter 7? You're relieved of of that debt if it was. If it was included in the bankruptcy, did a representative from your Mortgage company show up at the 341A Creditors Meeting to dispute the filing?
I hope your used an Attorney? Or did you do Probona? I hope it was an Attorney because Probona isn't a good way to do a bankruptcy if a house is involved.
I hope your used an Attorney? Or did you do Probona? I hope it was an Attorney because Probona isn't a good way to do a bankruptcy if a house is involved.
The house was in our bankruptcy. We had an attorney. No one showed up at the hearing from the mortgage company.
Hi Coryf,
It is true that the mortgage debts are not fully eliminated in bankruptcy. The lender still holds the lien on the property. If you surrender the property to the lender, he would foreclose it to recover the dues. This will have a bad effect on your credit report and your credit score would go down by 250 points.
It is true that the mortgage debts are not fully eliminated in bankruptcy. The lender still holds the lien on the property. If you surrender the property to the lender, he would foreclose it to recover the dues. This will have a bad effect on your credit report and your credit score would go down by 250 points.